Mitek Systems (NASDAQ: MITK) and China Mobile Games & Entnmnt Grp (NASDAQ:CMGE) are both computer and technology companies, but which is the superior business? We will compare the two businesses based on the strength of their institutional ownership, dividends, valuation, analyst recommendations, profitability, earnings and risk.

Earnings and Valuation

This table compares Mitek Systems and China Mobile Games & Entnmnt Grp’s gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Mitek Systems $42.16 million 7.97 $5.39 million $0.06 166.69
China Mobile Games & Entnmnt Grp N/A N/A N/A N/A N/A

Mitek Systems has higher revenue and earnings than China Mobile Games & Entnmnt Grp.

Profitability

This table compares Mitek Systems and China Mobile Games & Entnmnt Grp’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Mitek Systems 5.19% 10.45% 8.65%
China Mobile Games & Entnmnt Grp 13.97% 13.39% 10.90%

Insider and Institutional Ownership

42.7% of Mitek Systems shares are held by institutional investors. 8.5% of Mitek Systems shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.

Analyst Ratings

This is a breakdown of current ratings for Mitek Systems and China Mobile Games & Entnmnt Grp, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Mitek Systems 0 0 5 0 3.00
China Mobile Games & Entnmnt Grp 0 0 0 0 N/A

Mitek Systems presently has a consensus price target of $10.60, indicating a potential upside of 6.00%. Given Mitek Systems’ higher possible upside, equities research analysts clearly believe Mitek Systems is more favorable than China Mobile Games & Entnmnt Grp.

Summary

Mitek Systems beats China Mobile Games & Entnmnt Grp on 5 of the 8 factors compared between the two stocks.

About Mitek Systems

Mitek Systems, Inc. develops, markets and sells mobile capture and identity verification software solutions for enterprise customers. The Company’s technology allows users to remotely deposit checks, open accounts, get insurance quotes, pay bills, as well as verify their identity by taking pictures of various documents with their camera-equipped smartphones and tablets instead of using the device keyboard. Its technology uses algorithms to correct image distortion, extract relevant data, route images to their desired location and process transactions. Its technology processes images of documents in various ways. The Company’s products include Mobile Verify, Mobile Fill, Mobile Docs, Mobile Deposit and Commercial Mobile Deposit Capture. Its mobile technology solutions are provided in two parts: a software development kit (SDK) for mobile capture, and a software platform for image correction, detection, extraction and authentication.

About China Mobile Games & Entnmnt Grp

China Mobile Games and Entertainment Group Limited (CMGE) is a publisher and developer of mobile games in China. The Company’s games include social games, as well as single-player games which are available both individually and as part of game bundles. The Company provides game bundles to players through China Mobile. The Company’s games include Joyful Da Ying Jia, Jue Zhan Sha Cheng, Crisis Action and San Guo Weili Jiaqiang Ban, among others. The Company develops new mobile games and related updates and expansion packs. The Company’s Social games enable interaction among a numbers of players using different handsets or tablet computers. The Company’s Single-player games involve relatively simple rules and do not require time commitment from players.

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